Demographic Segmentation means dividing markets into objective quantifiable characteristics. In the case, energy bar business is divided by age, gender, calories need, preference and so on.
Usage segmentation means identifying market segments according to the way(s) in which the product or service is to be used. In the case, the motivation changed from providing a convenient energy boost for athletes to generalizing better “performance” during the day.
Key customer motivations and unmet needs
Energy Bar was positioned as athletic energy food, which was distributed at bike shops and events that usually involved running or biking.
Similarities and differences among the segments
The similarity among the segments is that the consumers who need energy bar all need to have better performance regardless of fields and difference among the segments separate into several aspects, such as age, gender, usage and so on.
Link between motivations and value propositions
A company should do some research first to determine who is its target. And figure out what is the consumers’ preference and which key factors it should focus on, and then produce bars. Without conducing any research and producing goods blindly would be a disaster for the company.
B, Identify the competitors. Who are the most direct competitors? The indirect competitors? Substitute products? What are the strategic groups?
Clif bar which first made the energy bar for female and another small and large firms are the most direct competitors of PowerBar. Companies who produce substitute products like food and candy are the indirect competitors. A strategic group is a concept used in strategic management that groups companies within an industry that have similar business models or